Producing

Houston-based independent Pogo Producing Co. is acquiring some natural gas properties in the San Juan Basin in two separate transactions from unnamed sellers. With the two agreements, which total $189 million, Pogo will add an estimated 100 Bcfe along with current production of 15 MMcf/d.

Pogo Producing has filed a request with FERC for emergency pipeline capacity allocation on Southern Natural Gas’ offshore Gulf of Mexico pipelines upstream of the Toca, LA, gas processing plant, part of which is scheduled to be taken down in August for upgrades. Pogo, a captive producer with about 52 MMcf/d of production behind the Toca plant, said the plant shutdown could lead to the shut-in of 250 MMcf/d of gas production and some oil production.

Houston-based independent Pogo Producing Co. is gearing up to expand exploration in the deepwater Gulf of Mexico (GOM) through the end of the year, after the board of directors upped the capital expenditure budget by 36%. Every operating division of the company will share in the increased funding, but most of the money will be directed toward drilling of at least five new high-potential GOM exploration prospects.

Continuing its rapid accumulation of producing properties, Chesapeake Energy on Tuesday announced it had paid $425 million for privately-held Greystone Petroleum LLC, which owns 214 Bcfe of proved reserves and 16,100 gross acres of leasehold in the Sligo Field in Bossier Parish, LA. The field has produced 1.6 Tcfe of gas.

With the writing on the wall for declining conventional supplies, Canada’s top natural gas-producing jurisdiction has become a convert to coalbed methane, vowing to push its exploitation beyond its prolonged infancy stage.

With the writing on the wall for declining conventional supplies, Canada’s top natural gas-producing jurisdiction has become a convert to coalbed methane, vowing to push its exploitation beyond its prolonged infancy stage.

Amerada Hess, BHP Billiton, Stone Energy, Pogo Producing and Tana Exploration were the top five companies based on total amount of high bids in the Minerals Management Service’s Central Gulf Lease Sale 190. The agency said 83 companies submitted $368.8 million in high bids, which was a 17% increase compared to Central Gulf Lease Sale 185 just last year. The total of all bids was $636.8 million.

Amerada Hess, BHP Billiton, Stone Energy, Pogo Producing and Tana Exploration were the top five companies based on total amount of high bids in the Minerals Management Service’s Central Gulf Lease Sale 190. The agency said 83 companies submitted $368.8 million in high bids, which was a 17% increase compared to Central Gulf Lease Sale 185 just last year. The total of all bids was $636.8 million.

As the output from many of the natural gas producing basins in the United States declines and energy players focus overseas, the industry remains short on answers as to how North America will continue to feed its voracious appetite for gas.